The track and trace solutions market is expected to reach USD 3.93 billion by 2023 from USD 1.65 billion in 2018, at a CAGR of 18.9%.

The growth of this market is mainly attributed to the stringent regulations and standards for the implementation of serialization, increasing focus of manufacturers on brand protection, growth in the medical devices and pharmaceutical industries, and rising number of packaging related product recalls. However, the high cost of serialization and aggregation is expected to hinder the growth of this market up to a certain extent.

Based on serialization type, the track and tarce solutions market is segmented into bottle serialization, blister serialization, vials & ampoules serialization, carton serialization, and medical device serialization. The carton serialization segment is expected to register the highest CAGR during the forecast period owing to the increasing awareness on supply chain efficiency in the pharmaceutical and medical devices industry.

On the basis of technology, the track and trace solutions market is segmented into linear barcodes, 2D barcodes, and Radio Frequency Identification (RFID). The 2D barcodes segment accounted for the major share of the track and trace solutions market for technology during the forecast period.

The increasing preference for 2D barcodes in packaging over linear barcodes due to the advantages of 2D barcodes such as they have higher data storage capacities as well as contain large amounts of data with fewer variations in image size are expected to drive the demand for 2D barcodes in this segment.

Geographically, the track and trace solutions market is broadly segmented into five major geographies, namely, North America, Europe, Asia Pacific (APAC), Latin America, and the Middle East & Africa. In 2017, North America commanded a major share of the track and trace solutions market. However, APAC is expected to witness the highest growth during the forecast period.

Growth in this market is driven by a number of factors, such as the growing pharmaceutical and medical devices market, increasing focus of prominent players on emerging Asian countries, increasing healthcare expenditure, and rising awareness on advanced track and trace solutions.